Financial Services Publications

Enforcement actions in the banking industry

Regulators issue hundreds of enforcement actions to banks each year. Recent research sheds light on current trends in the number, type, and severity of these actions, with implications for ways that banks may be able to better anticipate and respond to them.

Our Top 10 for 2016, produced by Deloitte’s EMEA Centre for Regulatory Strategy, predicts the key strategic regulatory issues that the financial services industry will face in the coming year. Each topic is accompanied by a view on the sector impacts across retail banking, capital markets, insurance and investment management.

Risk transformation can enable a financial institution to elevate risk management from a functional capability to an enterprise obligation that permeates the entire organization. When that happens, every business unit and individual becomes responsible for, accountable for, and capable of recognizing and addressing the risks within their purview.

This paper explores 10 key areas of focus in IT for internal auditors in financial services. Cyber security features as the highest priority topic for a second year running. Other key themes include strategic change, third-party management and digital risk.

European banks face significant risks in the retail payments market, as emerging fintech players and regulatory reforms pose new challenges. In this report, we explore the main scenarios which are likely to emerge and the strategies banks could follow to respond to market changes.

Global economy is going through a challenging and critical phase. The growth outlook seems to weaken due to developing countries. The volatile and high-risk environment makes it extremely necessary for countries such as Turkey, to strengthen their political and economic conditions and to be well-prepared.

​Increasingly, insurers are facing a variety of strategic risks—emerging threats that could undermine assumptions at the core of a company’s value proposition and foundational business model. Innovative technologies and new competitive paradigms are impacting nearly every area of business—rapidly and radically. Armed with a strategic risk management (SRM) framework, insurers can proactively navigate these rough waters as the tides change.

Management information for conduct risk

Underpinning better decision-making

The concept of “conduct risk” has risen to the top of firms’ and regulators’ agendas in recent years. In the UK, the FCA expects conduct risk management to be embedded into firms’ risk management frameworks, supported by appropriate management information (MI). Building on current regulatory and supervisory expectations and our experience of what works well in practice at firms, the EMEA Centre for Regulatory Strategy have identified 10 principles of strong conduct risk MI that we believe serve as a sound foundation for conduct risk MI across all financial services firms.

Global and Turkish Economic Outlook

Questions and answers

According to Deloitte’s Economic Outlook Report, although the first quarter growth rate is above expectations, the relative weakness in both the level and composition of growth continues. Deloitte expects a 2.5% growth rate, higher than expected inflation and a relatively high account deficit to GDP ratio in 2015.

Global risk management survey, ninth edition

92% of financial institutions report having a CRO or equiva¬lent position. 60% of respondents said their board of directors works to establish and embed the risk culture of the enterprise and promote open discussions regarding risk. 79% felt that increasing regulatory requirements and expectations were their greatest challenge. 87% of respondents cited that the most important impact of regulatory reform was increased cost of compliance.

Fifth Global IFRS Banking Survey

Finding your way

This fifth edition of the Global IFRS Banking survey focuses on the expected credit loss implementation challenges that banks will have to face and seeks to provide clients, regulators and the wider market with insights into current thinking across the sector.

Top 10 for 2015

Forward look:

Top regulatory trends for 2015 in insurance

The regulatory landscape for insurance will likely continue to be challenging and uncertain in 2015. As was the case in 2014, the insurance industry can expect to face new rules and modified requirements that could significantly affect how companies operate.

Forward look:

Top regulatory trends for 2015 in banking

In 2014, banks were scrambling to comprehend a wave of new regulations triggered by Dodd-Frank and the residual effects of the economic downturn. As they enter 2015, the focus shifts to the even bigger task of implementation and compliance.

The call for rerouting: Turkish banking sector outlook 2015

Macro-economic conditions, market and customer dynamics and regulative changes will continue affecting the Turkish banks’ profitability in 2015. While banks try to manage long and short term risks, they will also continue to focus on cost effectiveness. According to the senior executives of the reputable banks in the Turkish banking sector, digital banking and new branch models as well as banking solutions for the new generation are expected to gain more prominence.

2015 Hot topics for IT internal audit in Financial Services

Internal audit departments in the financial services industry continue to operate against a backdrop of heightened regulatory scrutiny, emerging best practices and increasing stakeholder expectations. Not surprisingly, this has resulted in a number of fundamental control areas featuring in this year’s top 10 hot topics.

Meeting new expectations

Banks are expected to demonstrate that they understand their customer base and have considered the associated risk of their customers. To help financial institutions of all sizes think about how they might enhance and transform their Know Your Customer (KYC) programs, the Deloitte Center for Financial Services presents Meeting new expectations: Foundational considerations when upgrading Know Your Customer programs.

Getting real about branch transformation

How to reinvigorate branch strategy

For many banks, determining the best strategy to deliver seamless customer service at the branch across various channels and platforms can be a challenge. Read this report to learn recommendations to transform your retail branch.

Talent in Banking

Talent in Insurance

Based on a global survey of 174,000 business students in 31 countries, although fast-moving consumer goods industry is ranked first, banking is closing the gap in Turkey. However, the insurance sector is not a popular career choice for business students both in Turkey as well as globally.

2015 Capital Markets Outlook

Preparing for takeoff

The Deloitte Center for Financial Services conducted an analysis of industry priorities and interviewed our leading capital markets practitioners to predict what’s coming in 2015. In this outlook, we highlight six areas that capital markets firms will likely have to prioritize in 2015.

Innovation strategies in retail financial services

From follower to leader

Although followers comprise the vast majority of the firms in the financial industry, very little guidance is available on how followers should approach innovation in their quest to overtake pioneers. This research addresses the gap by answering two questions that followers face.

Banking disrupted

Five threats to the traditional European banking model – and a roadmap for the future

Faced with the challenges of the financial crisis and re-regulation, retail bankers are distracted from the threat of the “de-banked consumer”. But, as we argue in our new report, banks’ core competitive advantages are being eroded – and they face some tough choices if they are to stay competitive in the digital age.

Generation Why?

Attracting the bankers of the future

The Deloitte Talent in Banking Survey 2013, produced in collaboration with Universum, explores intentions, aspirations and associations in relation to banking and careers, based on a global survey of over 100,000 business students from 1,350 universities.

Important steps for growth

2014 Hot topics for internal audit in financial services

Looking ahead

The role of internal auditors in the financial services sector remains under scrutiny. Internal Audit is expected to be highly influential and visible in providing value to their organizations. This year, a number of emerging topics have taken center stage for the financial services industry. Internal audit functions will need to have considered their approach to these matters and to demonstrate coverage of a number of sensitive and sometimes ambiguous topics.

Is it a new trend for mass banking?

2014 Banking and Capital Markets Outlooks

Repositioning for growth

After five years of tumultuous change, it is no surprise that banking and capital markets firms have yet to find steady ground. However, heading into 2014, there is increasing evidence that they may have a chance to shift to a higher gear – or perhaps even accelerate.What’s ahead for banks and capital markets firms as we look to 2014?

Global Risk Management Survey, Eighth Edition

Setting a higher bar

The survey’s findings reveal that retail and commercial banks, insurance companies, asset managers, and other financial institutions continue to have significant opportunities to strengthen their risk management processes and tools.

Elements for successful growth in financial services

Poised for opportunities

This survey of 200 global financial services executives revealed that after a difficult period, financial services companies are starting to refocus on growth. Firms will need to find the right balance of four elements: getting fit, managing, controlling and staffing in order to see growth.

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